WCL offers flexible auction of coal to consumers to help them battle COVID-19 woes

• The special spot e-auction of coal has been offered for a period of 3 months, said WCL

• The volume of coal offered is 3.5 Million Tonnes, which is higher than what is offered normally

New Delhi: In a bid to extend help and support to its consumers during the prevailing crisis due to COVID-19 pandemic, state-run WCL (Western Coalfields Ltd), a subsidiary of Coal India Ltd, has offered a flexible route of spot e-auction of coal during May 2020. This will not only help in providing immediate financial relief to consumers but will also give them an opportunity to plan their post-lockdown coal requirement.

WCL offering spot e-auction for 3.5 MT for 3 months

The special spot e-auction of coal has been offered for a period of 3 months. The volume of coal offered is 3.5 Million Tonnes, which is high. Normally, spot auction is done with a coal lifting period of 45 days only, and coal offered is below 1 Million Tonne. The payment has to be made within 10 days. "With this flexible offer, consumers will have the option to book the quantity in advance and can make payment and lift coal as per their requirement during the next three months," an official statement said on Tuesday.

"This relief to the consumers during the present lockdown situation will be in succession to the reduction in floor price of coal auction already implemented on the directives of the Ministry of Coal and Coal India. Earlier, the floor price of coal for auction was fixed, adding 30 percent over the notified price for some specific mines and 40 percent in the case of other mines. Now, all auctions are being done at a notified price which is giving substantial financial relief to consumers," said WCL.

Successful bidder and WCL will mutually decide monthly lifting schedule

The successful bidder and the coal company shall have the option of mutually deciding the monthly lifting schedule. The successful bidder would be required to make the payment for monthly schedule quantity by the last day of the preceding month. Participants will have the option of submission of EMD in the form of Bank Guarantee (BG) as well.

"By virtue of being located in Central India, WCL has the advantage of providing cheaper doorstep coal to consumers located in Central, Western, and Southern India. The advantage to consumers is huge savings in Railway freight in the transportation of coal from the eastern part of the country. The savings in landed price of coal ranges from Rs 500 to 750 per tonne. In line with the directive of the government to stop the import of thermal coal by state gencos, WCL is ready to cater to the demand of coal of such power consumers of the region. With sufficient stock of coal available and with year-over-year growth in coal production, WCL is also geared up to supply coal to other private power consumers as well under import substitution initiative," the statement added.